When graphing a worker's indifference curves in Probability of Injury (x-axis) versus Wage (y-axis) space, Al's indifference curves are steeper than Pete's indifference curve. In this case,
A. both are risk neutral.
B. Al is more risk loving than Pete.
C. Al will end up receiving a higher wage than Pete.
D. Al requires a greater wage increase than Pete in order to willingly take on more risk.
E. Al will only accept a job if it offers no risk of injury.
Answer: D
You might also like to view...
Which of the following is NOT a way to signal high quality
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Doing messy chores before a big date
The average U.S. citizens' share of the government debt represents less than 2 percent of a person's lifetime income
a. True b. False Indicate whether the statement is true or false
In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
You are given the following information about the economy: the nominal interest rate = 8 percent; the real rate of interest = 6 percent. The inflation premium is:
A. 2 percent B. 6 percent C. 8 percent D. 14 percent